Sell Your Own Home or Use a Real Estate Agent?
When selling a home, one of the biggest decisions to make is whether to sell it by oneself or to hire a licensed real estate professional.
Considering that the seller normally shoulders the entire commission fee, we’re talking big bucks. For instance, with a home selling for $500,000 at a standard 6% commission, the amount taken out of the seller’s pocket at the close of escrow would be $30,000. This is more than many people make in a year’s salary. This fee is split between the buyer’s and the seller’s agent and generally covers all the various listing costs. Many resourceful homeowners are willing to do the extra work involved with selling their home by themselves in order to keep that equity for their family.
That said, most sellers are still willing to pay the large commission fees in return for the reduction of migraine headaches and mountains of confusing paperwork involved with selling a home by oneself. Time constraints may make it difficult for a seller to hold open houses or be able to show their home during working hours. Beyond that, an experienced agent or broker can often help a seller navigate complicated legal pitfalls. An agent may also be able to make suggestions for improving a home’s appearance before the sale and to offer valuable insight into what a reasonable asking price might be based on neighborhood sales comparisons.
Even if a seller is savvy and confident in their ability to make the sale on their own, many buyers are aware of the cost savings for the seller and offer less than what they would if the home was represented by an agent. In that case, the seller isn’t gaining anything.
A homeowner considering selling a home on their own should be honest with themselves and answer these questions:
- Am I a good salesperson?
- Do I have enough time to schedule open houses and appointments in order to show the home to individual buyers?
- Am I confident in my ability to handle the paperwork involved with the sale?
If a seller is still unsure, there are many discount real estate brokerages that offer limited to full service help for less than full service fees. Also, there are real estate agencies that specialize in helping owners list the property themselves by providing flat rate listing fees on the MLS. Their flat fee often includes For Sale signs, newspaper advertising, and helpful information for the seller.